GMAC to pay packagers on offer
Mortgage Introducer (MI) has been informed that from 1 April, GMAC will be the first lender to pay packagers a percentage, set at 75 per cent, of the pipeline business they put to GMAC.
For example, if the packager has £10 million of GMAC offers at the start of the month, GMAC will pay that packager 75 per cent of whatever those proc fees are worth. If some of this pipeline business does not complete, this will be accounted for the following month.
It is thought the move will revolutionise the way lenders now have to pay packagers in order for them to keep ahead in the market.
MI also understands GMAC will be dramatically cutting the number of packagers it works with, from around 100-plus down to 60.
Jeff Knight, director of marketing at GMAC-RFC, said he could not confirm or deny the plans. He said: “We want to be right at the forefront of the packager market. We are working on a number of developments in order to be the leader in this channel. We have been talking to packagers and done some preliminary research to make sure we are meeting their needs.”
He added: “We want to work better and smarter with our packager partners so we have a strategic fit.”
Guy Garrard, director of business development at packager em-, said: “We have been in discussions with GMAC for some time about a series of fundamental and exciting changes to the way we do business together. Potentially, some of the likely changes could ask some very searching questions of GMAC’s competition and their commitment to the packager industry.”